I know that 1, the receiver of services is about to go into administration with no real possibility of the business being saved nor any creditors getting their money.

So do I inform my other client who is currently owed a relatively modest but not insignificant sum. They are not currently doing any work together.

I am mindful that I have this information in my professional capacity and therefore in confidence, but also that the surviving client is likely to be annoyed that I did not warn them. It is also the case the client is resaonably new to our firm and we were recommended by the business which is about to fail.